HMRC going after Class 2 NIC on those who simply own buy to let properties

HMRC going after Class 2 NIC on those who simply own buy to let properties

22 August 2014 13:23
It appears from cases being cited in the tax professional press that HMRC is currently seeking Class 2 NICs from those who simply let out one or more properties.

HMRC are arguing that the rental business is a real business, making the owners of the properties self employed and thus liable to compulsory Class 2 NICs (currently £2.75 a week).

In 999 cases out of 1,000, HMRC are wrong to bring this argument. Only in the exceptional case where you as the owner of buy to let properties do a huge amount of work (probably means full time, 37.5 hour working week) to manage the properties could HMRC be able to argue that you have become self employed.

If you get a letter from HMRC pursuing this false line of attack, do contact us immediately.

Share this post

Leave a comment

Filtered HTML

  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <blockquote> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

About Us

We are a firm of Chartered Accountants with a difference. We like to establish client relationships that allow us to understand both your business and personal goals.

Our forward-thinking approach means that we are consistently up to date with the latest tax and business legislation.

We provide a solution that allows our clients to rest assured that we will work towards achieving the best possible outcome for them.